News & Updates
May 18, 2015
This year was supposed to be the first wherein Obamacare’s state-based insurance exchanges would be self-sufficient. By now, the law’s architects assured, the exchanges would be thriving, competitive marketplaces, where all Americans could secure affordable coverage.
It hasn’t worked out that way.
Two of the original 17 state exchanges have failed. Half of those that remain are struggling financially.
After getting $5 billion in federal grants, most of the state exchanges have turned out to be a disastrous mix of runaway spending on technology, lower-than-expected enrollment, huge overhead costs, and looming bankruptcy.
Take the Covered California exchange. Despite receiving $1.1 billion in federal money, the exchange faced severe technological problems in its first year. Investor’s Business Daily has reported that shoppers are complaining about long hold times and difficulty cancelling or making changes to health plans.
To read the rest of this article on the Forbes website, please click here.